Home Talk Blog

Renting vs. Buying a House … Which is Best?

If you’re a renter that’s interested in buying a home, or a homeowner considering whether renting would make more sense for your life circumstances, chances are you have evaluated the costs, benefits, and cons of owning versus renting your home. There are many advantages to both and making the right or wrong choice can have a great impact on your future.

Some helpful questions to aid your decision-making process are:

How much can you afford?

How much do you have saved?

How long do you plan on living in the home?

Does flexibility or stability mean more to you right now?

Are you prepared to be responsible for repairs/maintenance?

What are your long-term goals when it comes to career, finances, and family?

While owning your own home can help you build wealth over time, it might not be the best option if you need more flexibility in your life. If you’re unsure of what may happen in your career, whether it be the stability of income or a potential cross-country move, it may be best to rent. Renting can give you peace of mind when life changes and you’ll spare yourself the headaches that come from home repairs and upkeep.

Advantages

Minimal upfront costs and paperwork

Flexibility to move to different locations

No exposure to market fluctuations

Looser credit requirements

No responsibility for maintenance and repairs

No property taxes

Disadvantages

Potential of raised rent or selling of the property

Limited choices depending on vacancy rates

Feeling unsettled

No equity

No tax benefits

To further help you in deciding whether you should rent or buy, check out this great calculator from The New York Times. It helps you weigh the known costs as it relates to finances and time. Also, remember to take the time to have the right conversations with your loved ones before you rush into a huge life decision.

Ready to buy a home? Working with a mortgage loan company is the easiest way to get everything under way. We’d love to help you secure your financing, and we can help get you pre-qualified fast so you can put an offer on the right home when you find it. Best of luck and remember to talk to US first.